When Glencore reached a deal on a $600 million support package with the Australian and Queensland governments earlier this week, it helped to secure the ongoing production of the Mount Isa copper smelter and Townsville copper refinery for at least another three years.
The support package was finalised after eight months of negotiations between the Swiss commodities giant and both governments, and it includes several financial review points and a commitment to complete a transformation study that explores more long-term investment in the Mount Isa region.
The landmark deal will be welcome news to the 600 workers and their families based in Mount Isa and Townsville, as Glencore’s Queensland metals operations have provided thousands of jobs since 2002, producing a copper supply chain.
“On behalf of Glencore and our workers, I would like to express thanks to the Australian and
Queensland governments for backing the region and these strategic assets with a critical support package,” Glencore Metals Australia interim chief operating officer Troy Wilson said.
“We support the Australian and Queensland governments’ push to develop policies which enable critical metals processing to continue in Australia, backed by a mining sector that makes a
significant contribution to the economy and supported by affordable and reliable energy.
“Copper is a critical metal for the future. Competition in the global copper smelting market is fierce
and it’s not a level playing field with various countries seeking to secure substantial market positions.”
Copper is an essential metal for electronic equipment, particularly mobile phones. It is also used in medical technology, such as ultrasounds, and in progressive low-emission technologies, including electric vehicles, solar panels and wind turbines.
“This smelter is pivotal, not just to Mount Isa Northwest, but Incitec Pivot Fertilizer Plant, the copper refinery in Townsville those 600 direct jobs and the thousands of indirect jobs that hang off the continued operation of this smelter, and we’re proud to stand shoulder to shoulder with this community,” Queensland Minister for Natural Resources and Mines Dale Last said.
“Along with the refinery, these assets create an economic foundation for 600 direct jobs and many more, and thousands more jobs across the state.”
Glencore’s operations in Australia make a significant contribution to the economy, generating $19.6 billion in revenue and creating over 17,000 jobs, while also paying $3.6 billion in taxes and royalties to the government.
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